external audit

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External Audit

A measurement and report on the state of a person's or business' finances, made by an external agency. A common (and feared) example of an external audit is an audit by the IRS, which is done to ensure that the person or business being audited has paid the appropriate amount in taxes. Often, companies hire audit firms to look at their financial states and to receive an objective assessment. It is also called an outside audit. See also: Internal audit, Audit.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

external audit

An examination of a company's records and reports by an outside party. Also called independent audit, outside audit. Compare internal audit.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Independent audits will be conducted in such Riga municipal companies as Rigas Namu Parvaldnieks housing manager, Rigas Udens water utility, Riga Mezi forest manager, Rigas Nami, Rigas Pilsetbuvnieks, Rigas Nacionalais Zoologiskais Darzs, Rigas Serviss, Riga Hospital No.
"Following an independent audit the issue was subsequently resolved.
Such report shall also include the results of an independent audit of the fund."
Securities and Exchange Commission (SEC) and mandated independent audits. Initially, the SEC intended to establish the same regulation system that the Federal Reserve had set up for banks, with government examiners conducting audits.
Instead, the new laws require independent audits but also limit accountants' control over accounting standards.
Hurst Liverpool partner, Claire Jackson, said: ``Although many firms will want to retain independent audits as assurance for shareholders, funders or acquirers, the money saved could instead be invested in putting strategies and actions in place to bring greater success to thebusiness.
External shareholders of small and medium-sized enterprises should be given an enhanced statutory right to have independent audits conducted, claims the Association of Chartered Certified Accountants.
Furthermore, they are likely to lose more business due to French legislation that requires that a company's accounts be subject to two independent audits. This will close the gap between the new firms and its main rivals, the Commission argues.
"The Head Start people are telling us that the administrative structure we have is not in accord with their requirements, and doesn't provide for independent audits. I agree; we are working on it," said a Puerto Rican Government official." Head Start offers educational and health services to pre-school children from low-Income families.
Simultaneously, the Public Oversight Board's Panel on Audit Effectiveness was conducting its own review and evaluation of the way independent audits are conducted.
Formal research and independent audits are usually best handled by the experts; yet, it's important to realize the value of the organization's participation in the process.
"It's hard to imagine there weren't independent audits done," he said.

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